FED:Gillard justifies levy compromise

Prime Minister Julia Gillard has justified a deal she struck with some crossbenchers to secure parliamentary passage of the government's controversial flood levy.

The compromises to previously-announced spending cuts represented less than three per cent of the relief package.

Ms Gillard has secured the backing of the Australian Greens and some crossbenchers for Labor's $1.8 billion taxpayer levy by rolling back savings originally targeted in raising the $5.6 billion for a floods recovery package.

"The government has of course discussed this legislation with people of goodwill in the parliament," Ms Gillard told parliament of the negotiations.

She rounded on the opposition's alternative cost-cutting plan which included reducing aid to Indonesian schools.

"They are so bereft of ideas, so bereft of policy and plans, that when they sit around shadow cabinet table, what they wait for is for someone to run in a One Nation email so they can adjust their policies," she said to howls of protests from opposition MPs.

Assistant Treasurer Bill Shorten told parliament that there was no contradiction by the Treasurer Wayne Swan when he said he would have to find additional savings in the budget to pay for the flood package.

Opposition treasury spokesman Joe Hockey had asked how Mr Swan could not find additional savings in February, but will be able to in the May budget.